Dallas-based Braemont Capital has made its first partial exit with the sale of a majority stake in Loenbro, LLC, a technical services provider to the data center and critical infrastructure markets, to middle market private equity firm Kohlberg to expedite the company’s growth and expansion.

Braemont and Loenbro management are retaining significant equity interests. Financial terms of the transaction were not disclosed.

“Loenbro has grown meaningfully throughout the duration of our partnership, and we are pleased to remain a significant investor alongside Kohlberg and Loenbro management as the company enters into its next chapter,” Jeff Volling, partner at Braemont, said in a statement. “Our continued partnership reinforces our conviction in Loenbro’s ability to scale and extend the progress achieved during our ownership.”

It’s a busy time for Braemont Capital. Just last week we wrote about Braemont making an investment in Royal Cup Coffee & Tea, a 130-year-old family-owned business based in Birmingham, Alabama.

Growing critical infrastructure support services

Founded in 2000 in Westminster, Colorado, Loenbro offers mission-critical electrical, mechanical, and structural services to support essential infrastructure. Over the past several years, the company said it has expanded its geographic reach and capabilities through organic growth and strategic acquisitions, while “maintaining a strong commitment to exceptional customer service and employee safety.”

The partnership with Mount Kisco, New York-based Kohlberg is designed to expedite Loenbro’s continued growth. With a focus on partnering with best-in-class management teams, Kohlberg said it has built a decades-long track record of supporting infrastructure companies in meeting their customers’ needs while ensuring quality and safety.

“We’re thrilled to partner with Kohlberg as we pursue the next phase of our ambitious vision for Loenbro. This investment will strengthen our capabilities as we build a best-in-class national platform to deliver reliable outcomes for our customers across industries,” said Daniel Cowan, president and CEO of Loenbro. “We are grateful for Braemont’s support and look forward to their continued contributions to our business.”

Kohlberg leaders also focused on the importance of critical infrastructure services.

“Loenbro serves customers operating in complex, mission-critical environments across multiple disciplines where operational excellence and high-quality service is key,” Benjamin Mao, senior partner at Kohlberg, said in the statement. “As a strategic partner, we will focus on supporting Loenbro’s highly reliable service offerings, while helping the Company explore new avenues for growth to meet customers’ evolving needs.”

“Demand for data centers and critical infrastructure services continues to grow, and we expect its pace to accelerate,” said Ben Yu, partner at Kohlberg. “We believe Loenbro has established a strong business foundation and innovative culture and are we excited to support the management team on the next phase of its journey.”

Evercore and Kirkland & Ellis LLP served as financial and legal advisors to Loenbro, respectively. Harris Williams, KeyBanc Capital Markets and Stifel served as M&A advisors to Kohlberg, and Greenberg Traurig, LLP and Kirkland & Ellis LLP served as M&A and financing counsel, respectively, to Kohlberg. The transaction is subject to customary closing conditions and regulatory approvals.

Don’t miss what’s next. Subscribe to Dallas Innovates.

Track Dallas-Fort Worth’s business and innovation landscape with our curated news in your inbox Tuesday-Thursday.